Revenue for the three and nine month periods ending September 30, 2019 totaled $1,945,744 and $4,081,527 respectively
Network of independent recruiters increased 12% sequentially from 10,034 in Q2 to 11,279 in Q3
HOUSTON, Nov. 21, 2019 (GLOBE NEWSWIRE) -- Recruiter.com Group, Inc. (“Recruiter.com” or the “Company”) (RCRT), the expert network platform for recruiters, provides shareholder update and reported its financial results for the three and nine month periods ending September 30, 2019.
Recruiter.com CEO, Miles Jennings, commented, "After two quarters of integration and process efforts, we are now extremely excited to shift focus to accelerating our revenue expansion with top name clients and executing against our business model. We are confident in our vision of disrupting the recruiting and staffing industry by aggregating small and independent recruiters under a common platform, giving them access to large enterprise companies and technologies and becoming the largest recruiting firm in the world. We are primarily focused on onboarding several new key strategic clients and improving our communication and engagement with our independent recruiter network. We are simultaneously engaged in our strategic efforts to position Recruiter.com for an uplisting to a national securities exchange.”
The network of independent recruiters increased over 12% sequentially from 10,034 users at the end of the 2019 second quarter to 11,279 users at the end of the 2019 third quarter. Information Technology and Computer Software remained the most popular specialties and industries among the community of recruiters.
Financial Highlights for the Three and Nine Month Periods Ending September 30, 2019:
- Revenue for the 2019 third quarter totaled $1,945,744, as compared to $158,706 for the same period the year prior, an increase of $1,787,038.
- Revenue for the first nine months of 2019 totaled $4,081,527, as compared to $687,538 for the same period the year prior, an increase of $3,393,989.
- Revenue growth year-over-year during both periods was primarily attributable to the Recruiting Solutions line of business, acquired from Genesys Talent, LLC in March 2019, as the Company invested resources in its recruiting platform business and away from Career and Marketing Solutions.
- Gross profit for the 2019 third quarter totaled $453,939 compared to $510,559 in the 2019 second quarter due to growth within a lower margin enterprise client and the Company’s general shift away from Marketing Solutions, yielding gross profit margin of 23.3% compared 25.9% in the 2019 second quarter.
- Gross profit for the first nine months of 2019 totaled $1,127,800 yielding gross profit margin of 27.6%.
- With $2,404,642 in Operating Expenses, the Company generated an overall Net Loss of $1,028,034 for the quarter. Net Loss included a $1,411,565 share-based compensation expense and a $951,271 positive change in fair value of the derivative liability, resulting from a decrease in the market value of the Company’s common stock, both of which are non-cash items.
- Signing a major Fortune 50 customer and multiple additional mid-market customers.
- Accelerating independent recruiter network growth by 12% versus 8% in the second quarter.
- Rolled out “Team Management” on the Recruiter.com platform to support our 15+ independent recruiting teams.
- Continued the technical integration with Censia, an AI platform for talent identification.
Recruiter.com has completed the integration of the business, systems, and team following the acquisition of certain assets of Genesys Talent, LLC in the second quarter of 2019. The assets acquired, primarily client lists and book of business, successfully held their value and sales from its recruiting clients rose slightly in the 2019 third quarter. The acquisition is expected to continue to drive revenue growth in subsequent quarters, as further opportunities are unlocked through the marketing and technology capabilities of Recruiter.com. The Company plans to continue to look for accretive acquisition opportunities in the recruiting and RPO space.
About Recruiter.com Group, Inc.
Recruiter.com Group, Inc., the expert network platform for recruiters, pairs enterprises with the most extensive network of recruiters to drive the hiring of top talent faster and smarter. Recruiter.com offers recruiters SHRM-certified recruitment training and independent earning opportunities. Recruiter.com was voted “Top Tech Company to Watch” by the CT Tech Council, cited as one of the “Top 35 Most Influential Career Sites” by Forbes, and listed by Inc. as one of the “9 Best Websites for Finding Top Talent.”
Please visit https://www.recruiter.com or the following social media channels for more information.
LinkedIn Recruiter Network Group: https://www.linkedin.com/groups/42370/
LinkedIn Company Page: https://www.linkedin.com/company/1240434
Twitter Company Page: https://twitter.com/recruiterdotcom
Facebook Company Page: https://www.facebook.com/RecruiterDotCom
Cautionary Note Regarding Forward-Looking Statements.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the expected future revenue growth and its drivers. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include the ability of our technology to perform to function as expected, our ability to hire qualified professionals, our ability to successfully integrate businesses, teams, and technology, product marketing, and community management functions, continued demand for professional hiring, our ability to obtain additional financing,, and the Risk Factors contained within our filings with the Securities and Exchange Commission including our Annual Report on Form 10-K for the year ended March 31, 2018. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.